PeruGloria enhiesta en milenios de historia…

Grenville Gold digs its Silveria Geological cake

It looks as if Grenville Gold (TSX.V: GVG) has all the ingredients necessary for success at its Silveria project in Peru. The company recently released a 43-101 report on Silveria that describes the exploration and development plan for a potential silver-zinc-lead-copper resource. In addition to its three Peruvian properties, the company has a property in Ecuador which has a history of artisanal gold mining.

Silveria is located in the Huarochiri Province, 80 km WNW of Lima. 2797.16 The property consists of 224 hectares in concessions that cover four historical mining areas (Germania, Millotingo, Pacococha and Silveria). The area is well served and there are several mills in the area, including an opening, a thousand 350 tons per day with buildings for Millotingo. Pacococha Mine (which eventually absorbed the Germania and Silveria operations), saw 30 years of producing high quality mineralization. The Millotingo and Pacococha mines closed in 1992 due to weak metal prices and political turmoil.

The project is in the early stage of development, and Grenville has so far focused on consolidating the available database of historical records Pacococha mine, plans and sections into digital 3-D. This information will be superimposed on topographic maps to create a 3-D model to guide solid underground channel sampling programs, drilling programs and a scoping study.

According to the company's NI 43-101 report, the image of structures Silveria suggests that the general area was subjected to compression severe tectonic fracture patterns produced strong, on a regional scale, in part, allowed the intrusion of polymetallic sulphide mineralization in quartz veins filled open fractures. There are approximately 33 mineralized veins in the area of mining Pacococha-seven mineralized veins at Germania, Silveria and two mineralized veins at Millotingo. It is suggested that this mineralogical environment is analogous to that found in neighboring Coricancha mine recently reopened by Gold Hawk Resources, which coming soon to the production of 600 t / day.

The property is full of tunnels left by past producers. 86,000 tonnes of mineralized rock has been determined that the possibility of access in the short term. Grenville long-term objective is to identify potential resources in the existing underground workings and then explore below this level of scattered deposits.

Of particular interest are the tailings ponds adjacent to the factory Millotingo. The company plans to take samples of these residues to assess the feasibility of heap leaching to recover the contained silver and gold. Other potential mineral resources have been identified many small and medium landfills mineralized rock surface (excluding deposits left by the miners for the collection and sale), without removing the veins in the mine workings groundwater, existing production levels, and new development areas, both over and under developed countries limits the levels existing production, and various surface exploration targets.

34 samples taken from the rock dumps returned the test results are abnormal low-grade gold values in all samples and Pacococha Germania mine, but the values of ore grade gold from the mine Millotingo. Silver grades are consistently high in all samples dump, with tests ranging from 3.50 g / t to 2220 g / t Ag base metal values vary between 0.007% and 3.90% Cu, 0.01% and 7.15% Pb and 0.07% to 19.70% Zn, suggesting a high grade polymetallic nature of the veins of all the districts.

The company has a particularly strategic innovative use their short-term costs and generate substantial cash flow. In order to safely explore the performance of age, workers clean the stone loose, high degree that was stored in the recesses of the above operators. This ore is then marketed to nearby factories that are working below capacity. It costs between $ 17 – $ 18 / t to get the rock to the mill, which sell between $ 100-120 / t. According to company president, Paul A. Gill, "[the process], the production of 500-600 tonnes per week. "The provisional estimate 43-101 and preliminary long-term scenario average cost of field operation is 45 U.S. $ per tonne milled.

The old story says, "The best place to find a new mine is near an old man, indeed applies in this situation. High copper prices once production of the mines (especially in Peru) worth further consideration. The administration has advantage of the market's interest in the recently launched an awareness campaign reaching market, with conference appearances in Calgary, Frankfurt, Munich, Zurich, Geneva and London.

Grenville is led by people with years of experience in the exploration success in the key roles for the development of major projects. The company president, Mr. Len de Melt, is a graduate of the renowned Haileybury School of Mines and was instrumental in starting and building six mines, including Gulf Oil's Rabbit Lake is mine (uranium), Syncrude mine (oil sands), Denison Mines Quintet (coal), Homestake's Golden Bear mine (gold) BHP's Ekati mine (diamonds) and Goldust mine is Croiner (gold). Mr. A. Paul Gill, the president of the company, held senior positions with Norsemont Mining Inc. and Lomiko Resources Director.

Grenville offers investors the opportunity to have their cake and eat it: with properties that have a proven track record and deserve greater analysis, a pragmatic and structured approach that provides both short and long term valuation opportunities, current income flow, a relatively narrow given the current market structure (32,694,200 fully diluted), an international promotional effort in full swing, a miner to use climate in Peru, and the record metal prices.

If the proof is in the eating, the market is showing a healthy appetite-GVG closed at $ 0.55, to $ 0.05 on Wednesday.

This article is intended for information only and is not a recommendation to buy or sell shares of any company mentioned this document. It is based on sources believed to be reliable, but can not guarantee its accuracy is expressed or implied. The opinions expressed in this article are those of the author except where statements are attributed to persons other than the author, in which case the opinions are those of the person to whom they are attributed.

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